Danske Bank has reported full-year profits of £218.2m for 2024, up 17% from £186m in 2023.
Total income at the Danish-owned lender was up from £332.3m to £387.3m, and deposits rose from £10.7bn to £11.4bn.
The bank said that with business and personal deposits were “at a record high, and this capacity represents an opportunity for local economic growth”.
Overall, there had been “a strong income performance… driven by lending and deposit growth in a higher interest rate environment”.
However, costs were up from £159.4m to £178.7m, which Danske said reflected continued investment in customer experience but also inflationary pressures and higher regulatory expenses.
But a net impairment release – with loan impairments falling from £13.1m to £9.6m – reflected the strength of the bank’s loan portfolio, it said.
Chief executive Vicky Davies said: “I am pleased to announce a strong financial performance for 2024. Moving into 2025 in a robust financial position means we are a bank that remains well positioned to support customers when they need us.
“We continue to focus on helping local businesses with their growth ambitions, enabling local people to realise their homebuying aspirations and on playing a key role in supporting the wider Northern Ireland economy.”
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Over 2024, she said the lender had provided home loans totalling £730m to borrowers in NI, a rise of 35% year on year.
And she said that while in 2023, over half of customers had chosen a five-year fixed term, in 2024 63% opted for a two-year fixed product as they anticipated more drops in interest rates.
She added: “We expect local mortgage lending to remain healthy this year, buoyed by the decreasing rate environment, low unemployment levels and strong buyer demand.
“We are also continuing to grow our mortgage business across the rest of the UK, where, in 2024, we provided over £290m of mortgage lending approvals – up over 25% year-on-year.”
And the bank had lent £750m to businesses in NI over the year. “Notable business deals during 2024 included growth funding support for local enterprises Andras House, Finnebrogue, Used Cars NI, Exorna Kitchens, the Deluxe Group, Connswater Homes, Lunn’s Jewellers, Moore Concrete Products, McComb’s Coach Travel, Bathshack and Millar McCall Wylie Solicitors.
“We also welcomed over 1,500 new small business customers to Danske Bank and lending approvals for small businesses were up 14% year-on-year.”
On Thursday the Bank of England’s Monetary Policy Committee announced a cut in the base rate of interest from 4.75% to 4.5%.
Bank of England cuts interest rates to 4.5%